Bitcoin is a decentralized digital currency that has no central bank nor a single administrator.
Therefore, it is important to know the pros and cons of Bitcoin just like knowing the pros and
cons of other investment plan. So here are the things you need to know about Bitcoin before
1. Bitcoin Is Volatile
Because Bitcoin is quite fresh, the price can rise drastically and then before you know it, it can
drop drastically within a short period of time which means investors can either lose or gain.
Bitcoin is one of the high-risk investments that one shouldn’t invest all one’s money or savings
that one can’t afford to lose. Do not be afraid to make a reasonable investment in Bitcoin as
every business ventures has various level of risk.
2. Bitcoin Requires a Secure Wallet
Just like it is important to keep your banking details, and other personal information that can expose you to theft/ scammers safe, same rule applies to Bitcoin. Bitcoin requires you to have a secure wallet which is a software or application which helps interaction with a block chain so that Bitcoin can be sent and received at any time.
3. Payments Made With Bitcoin Are Irreversible.
Mistakes made in Bitcoin transactions cannot be reversed, but the funds transferred can be returned by the person who received the transaction. This is why it is advisable to carry out transactions with a trusted person/ exchange companies only for safe exchanges and secured Bitcoin transactions. Exchange companies such as Naira Direct and Exchange Indeed carries our safe bitcoin exchange transactions.
4. Bitcoin Can Be Used To Purchase Things Online
Wondering what other things Bitcoin can be used for? Bitcoin can be used to purchase various items online however, you must ensure that the payment platform which you intend transacting business with accepts Bitcoin as a means of payments.
5. Bitcoin Is Inflation Resistant
Bitcoin is resistant to inflation because there will be only 21 million coins in existence according to the initiative and decision of Satoshi Nakamoto, the founder of Bitcoin. This initiative gives Bitcoin an upper hand over other traditional currencies and it simply means that Bitcoin will always maintain its value.
In conclusion, having listed all this information about Bitcoin, it is evident that the advantages of Bitcoin outweigh the disadvantages and this is an indication of a good investment.